In the midst of the ongoing US-China trade negotiations, President Trump has found himself in a complex predicament.
The President recently announced that he had identified a buyer for TikTok, the popular but controversial short-video app owned by China. However, the real issue lies not with the buyer, but with the seller, as reported by The New York Post.
TikTok has become a bargaining chip in the trade negotiations between the U.S. and China, with Beijing aware of Trump's desire to keep the app operational in the U.S.. This information comes from individuals privy to the matter, who suggest that the sale of TikTok to American investorsa necessary step to comply with a U.S. law prohibiting the app's domestic operationwill not occur until Chinese President Xi Jinping is confident he has maximized his leverage in securing a favorable trade deal with the White House.
One person involved in the negotiations stated, Trump still doesnt have a seller, highlighting the issue that Xi is a no-show in prioritizing TikTok in the broader trade discussions. This has left those involved in the TikTok deal and those monitoring the trade negotiations puzzled, especially after Trump's recent statement on Fox News: We have a buyer for TikTok. Ill tell you in two weeks. He further added that China will probably permit the sale to very, very wealthy people. Its a group of wealthy people.
The concept of very wealthy people willing to purchase TikTok is not a novel idea. In April, a consortium of affluent investors and tech magnates were ready to bid for the U.S. operations of TikTok until Trump initiated a trade war against Beijing, imposing 145% tariffs on imported goods. This tariff has since been reduced as both nations negotiate other trade aspects as part of a broader agreement.
In 2024, a bipartisan group of US lawmakers, concerned about the potential for China to use TikTok for espionage, passed legislation that would prohibit the app's operation on US app stores unless China relinquished control of the platform. This legislation, signed by former President Biden, was set to take effect on January 19, the day before Trump's inauguration.
Trump, who initially supported banning TikTok, became a proponent of the app after the 2024 election. He believed that pro-Trump content on the platform helped him secure the youth vote, a demographic that constitutes the majority of TikTok's user base.
Upon his return to the White House, Trump has been seeking a solution to keep the ban from taking effect. He has issued a series of executive orders to delay the ban, despite criticism from prominent Republicans who argue that the law is still being disregarded due to Trump's delaying tactics and even the latest deal iteration.
The last negotiated deal stipulated that the Chinese would retain a minority stake in the new U.S.-investor controlled company and continued ownership of TikToks most valuable assetits technology, specifically the algorithm that curates videos based on user preferences. U.S. lawmakers argue that this technology could be used for espionage.
Despite China's denial of these spying allegations, U.S. lawmakers remain concerned that the majority of U.S. control does not provide sufficient protection from potential espionage. This concern has prolonged the process of finding a structure that satisfies all parties involved.
Even with a buyer that appeals to the seller, TikTok may still face a ban in the coming months unless Trump issues another extension after the current one expires in mid-September.
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